Deliverable 1- Creating Data Sets
TO: CEO, Mark Hammel
FROM: Facility Manager
DATE: 7/13/2020
SUBJECT: SITE RESEARCH
The location of a business is very important as it is an important factor in determining whether a business will be successful or not. When setting up a site, the positioning or the location of the site is very crucial; despite the rise in technology and other forms of technology the positioning of a site can still not be underestimated. If the business is located far from the customers then this will affect the business. There are various factors to consider when deciding to set up a new facility.
Manufacturing industry in Atlanta is a growing industry which embeds technology in its daily business and with a growing emphasis on the use of sustainable energy for production; it is therefore important use more of sustainable energy in our daily to daily operations to improve on our company productivity and also save our environment in the process.
After I did the site research for the new facility, I found out that there were several factors that are influencing setting up of the new facility. By taking into account these factors, we will be able to achieve our goal of retaining our current employees and using of sustainable energy, these factors include sustainable energy, skilled labor, raw materials, utilities and shipping conveyances in the Atlanta area.
By use of sustainable energy in our new facilities, we will be able to meet our energy demand for manufacturing our vehicles as well as ensuring the energy can be reused again without depleting it in the process, this is a form of energy that should be embraced as the new frontier, these forms of renewable energy include solar, wind and geothermal energy. After conducting a survey in the Atlanta area, I found out that majority of the people were open to having a new environmentally friendly manufacturing site in Atlanta, majority of the sample population also were open to having zero emission vehicles and wanted to live in a clean, toxic- free environment ( (Heber)this survey shows that sustainable energy is important when considering setting up our new facility in the area. It was also noted during the site research that utilities in Atlanta were relatively cheaper when compared against the U.S, in the year 2017 the average price of gasoline per gallon in Atlanta was at 2.31225 while the U.S price was at 2.468, while that of electricity was at the same price and the price of piped gas in Atlanta was slightly higher at 1.57625 while that of U.S was at 1.0195 ( (Roswell, 2017) this shows that utilities in the Atlanta area are slightly cheaper.
Skilled labour is a very important factor when it comes to setting up a manufacturing facility as it is an important resource that can enable the company to propel further and expand exponentially. The most accurate and reliable source of data for skilled labor can be found in the Bureau of Labor Statistics. The website provides up to date information regarding the skilled labor for the motor vehicle manufacturing industry. According to U.S bureau of labor statistics, nonfarm payroll employment rose by 4.8 million in june, after increasing by 2.7 million in may, continuing the resumption of economic activity across the nation. In the manufacturing industry, employment increased by 356,000 in june,there was an increase in the diffusion index to 77.0 indicating a rise in the number of jobs, the average hourly earnings for all employees declined by 45 percent (statistics)this shows an increase in the number of jobs hence potential skilled labor. Raw materials are important in our industry since we depend on them to manufacture our products hence an important consideration when setting up the new facility.
Shipping conveyances is a crucial consideration since it will determine an efficient method of distribution that will be efficient on the costs and effective on the output, after a research was done on specialized freight trucking, the average wage was found to be at $14712942.79 while the taxable wage was found to be $4957671.213 this was from local government entities as well as private entities as compared to rail transport which had an average wage of $289208.8994 and taxable wage of $91714.02367 (statistics b. o., 2016) this figures are important when deciding our mode of transportation of our products.
All of these factors as discussed above are interrelated in that they affect each other directly or indirectly and each has a cost, finding an optimal balance between these factors is important as it will inform us in setting up the site which in turn will be productive after setting it up in a suitable location that can be easily accessed by all of our esteemed customers. By choosing the right sustainable energy to use, we will be to save more on our energy costs while having an efficient production line. The availability of raw materials will also reduce our production costs while increasing revenue, skilled labor will improve our work throughput while also creating value in our company and better shipping conveyances will enable a smooth running of business while also ensuring customer satisfaction by delivering the products on time and in good condition. After finding a good balance of all these factors based on our research we will be able to set up the ideal state of the art facility since they all affect each other in the long term.
After analyzing the research in the potential data and creating a dataset that will help in informing our decisions, some gaps were identified like on the employment dataset that does not have complete information narrowed down to Atlanta area and the taxable wages which gives an incomplete analysis, these gap can be closed by doing further research specific to our location of interest that will enable us to extract more qualitative data.
References Heber, E. (n.d.). survey. Retrieved from Envision Heber 2050: https://envisionheber.com/survey/ Roswell. (2017). utilities. Retrieved july 13, 2020, from sandy springs: http://www.sandyspringsga.gov/residents/resident-guide/your-home/utilities statistics, B. o. (n.d.). data. Retrieved july 13, 2020, from bls.gov: https://www.bls.gov/data/ statistics, b. o. (2016, may). Rail transportation. Retrieved july 13, 2020, from Bls.gov: https://www.bls.gov/oes/2016/may/naics3_482000.html